First Ship Lease Trust (FSL Trust) announced entering into a memorandum of agreement (MOU) to purchase a 2007, Japanese-built, 45,998-dwt MR product tanker for US$21.8 million, delivering on its stated strategy to improve revenues by 2016.
The acquisition will be financed through existing cash reserves that totaled US$41.8 million at 30 June 2015 and upon delivery of the vessel, FSL Trust’s fleet will stand at 24 vessels, comprising seven containerships, 12 product tankers, 3 chemical tankers and 2 crude oil tankers.
The vessel is expected to be delivered to FSL Trust between 1 November 2015 and 31 January 2016, and is intended to be employed in the spot market through a first class commercial manager. FSL Trust expects this to deliver an annual cash-on-cash yield of 14.5 percent base on a conservative TCE of US$16,500 per day over the next three years.
In April, the Trust announced a two-year time charter agreement with a prominent US domestic oil company for FSL Hong Kong, a crude oil tanker. Underpinned by the continued improvement in the tanker market, the Trust recently secured new time charter agreements, worth up to US$61.0 million over the next three years, for the Aframax crude oil tanker, FSL Shanghai and, MR product tankers, FSL Hamburg and FSL Singapore, with a leading global commodities trader.
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